Dear John,
A budget is the most profound statement leaders can make about our values and priorities when it comes to ensuring a high quality of life and a bright future for our children. I am proud to be part of a Democratic-led General Assembly that secured funding for the foundations necessary to build a prosperous Commonwealth.
I wanted to begin modernizing our tax system by placing a retail tax on the sales of digital goods for business-to-business transactions. This strategy would have increased our revenues, and could have helped us weather a potential future downturn in the economy. In fact, Governor Youngkin had originally proposed such a tax on consumer transactions. But he then changed his mind and became adamant that there would be NO new taxes of any kind. The compromise position was that there would be no tax cuts either.
Therefore, we funded the Democratic-crafted budget based on projections from our money committees that revenue growth would be sufficient to support our budget for several years beyond the 2026 timeframe. Fortunately, the General Assembly commissioned a study to look at overhauling the state’s tax system and plans to take up the issue of tax reform over the next few legislative sessions.
Increased Pay for K-12 Teachers: As a member of the Senate Finance and Appropriations Committee, I can tell you that the Democrats did not waiver in our quest to bolster funding for public K-12 education. The adopted budget increases funding for public education by $2B. We increased state funding for teacher pay by 3% in each fiscal year. This pay increase acknowledges the dedication of teachers and their critical role in our children’s academic success. By continuing to increase teacher salaries, we are investing directly in our children’s education and tomorrow's workforce.
More K-12 Support: The budget also increases funding to high-poverty schools and better supports English language learners. We allocated dollars to create parent resource centers for children on IEPs, as required by the special education reform bill that I passed. We extended funding to continue a mental health pilot program in six school divisions. This holistic approach to supporting our children in their educational journey is the right thing to do and will pay significant dividends.
Higher Education & Workforce Training: The budget allocates $204M over the biennium to increase access, affordability, and degree production at public colleges and universities. This includes $40M in additional support for Historically Black Colleges and Universities. I am most proud of the fact that the budget provides $42M in need-based undergraduate and graduate financial aid. The budget also recognizes the vital role of research in driving progress, and targets resources for research initiatives at public universities. These investments will solidify Virginia’s leadership in groundbreaking research, fostering technological advancements and attracting elite talent.
Mental Health Services & Capacity: The budget provides over $50M in new money over the biennium to continue developing the infrastructure for the delivery of early intervention services and crisis intervention services. This new money includes funding for the expansion of early intervention programs like STEP-VA and for the addition of more mobile crisis units. It also provides money to Community Services Boards for workforce development and staffing. An additional $20M is allocated to increase salaries at state hospitals.
WMATA Funding: It is important to note that Metro is funded at the level WMATA requested. More importantly, the General Assembly passed a resolution, which I co-patroned, that establishes a legislative joint subcommittee to study sustainable dedicated funding options and cost containment controls. The subcommittee must recommend strategies to ensure that WMATA, VRE, and all Northern Virginia transit systems meet the growing needs of public transit in the region.
Other Transportation Funding: The adopted budget allocates $6B for road and bridge improvements, and significant funding for modernizing public transit. As a former Arlington County Board member and regional leader, I understand the value of connecting our communities and establishing the infrastructure for economic growth. This strategy will better connect housing to jobs, restaurants, and entertainment.
Broadband Access: We are continuing to make progress on connecting every corner of the Commonwealth to relatively high-speed internet access. The foundation for this incredibly important equity element is the Biden-initiated infrastructure bill. In addition to almost $2B in federal money, the adopted budget moves $50M over two years from the general fund to the Virginia Telecommunication Initiative, or VATI. The money is intended to help cover construction costs for private sector broadband service providers.
Disappointments: You may be aware that language to require Virginia to rejoin the Regional Greenhouse Gas Initiative (RGGI) was removed in the final budget. The governor was adamant that RGGI language could not be in the budget. Although I am disappointed over this, the removal of this language in no way minimizes the fact that Virginia’s participation in RGGI is already mandated by law and that the Governor’s attempt to unilaterally remove Virginia from RGGI is a gross overstep of his authority. Moreover, a lawsuit on that issue is pending that is intended to stop Governor Youngkin’s administrative efforts to remove us from RGGI. I will keep you posted on the lawsuit.
Some Environmental Progress: I am delighted to say that despite the RGGI disappointment, we were able to secure significant funding for other environmental priorities. The budget makes investments to clean up our water supply, including $231M to implement agricultural best practices, such as controlling erosion and constructing stream fencing; $20M to fund proven pollution reduction projects in the Chesapeake Bay; and $400M to upgrade and improve wastewater treatment. The budget also provides $100M for flood preparedness and $1M to create an Office of Commonwealth Resilience to coordinate climate adaptation. This funding is becoming increasingly important as we see more extreme weather due to climate change.
Summary: Overall, the budget represents a reasonable compromise. We funded issues that are important to the future and wellbeing of the Commonwealth and the budget was adopted well before the June 30 deadline.
Thank you for your ongoing support. It is an honor and privilege to represent you in Richmond.
Sincerely,
